When Capital Is Accumulated at the Rate That Maximizes Consumption

question 15

Multiple Choice

When capital is accumulated at the rate that maximizes consumption per worker in the steady state, the marginal product of capital is equal to the

• A) savings rate plus the population growth rate.
• B) population growth rate plus the depreciation rate.
• C) depreciation rate plus the savings rate.
• D) savings rate divided by the marginal product of labour.
• E) consumption per worker plus the population growth rate.

---

Definitions:

Reflex

An automatic and involuntary response to a specific stimulus without conscious thought.

Sensory Stimulus

Any object or event that is perceived by the senses, producing a response in the sensory organs and nervous system.

Zygote

The initial cell formed when two gamete cells are joined by means of sexual reproduction, marking the beginning of a new organism's development.

Fertilized Egg

A cell that results from the union of a sperm cell with an egg cell, marking the beginning of a new organism's development.